SANTIAGO, March 5, 2026, 18:17 CLST
Microsoft landed an 18-month memorandum of understanding with Chile’s Codelco on Thursday, setting up a framework to pilot artificial intelligence, advanced analytics, automation, and digital security across the mining giant’s operations. The agreement nudges Microsoft’s AI ambitions further into the industrial sector—territory that falls outside its core business of office software and cloud services.
Timing here isn’t incidental. Microsoft wants to prove its AI expansion can land real-world deals, though the ramp-up keeps attracting questions about its electricity needs. Just a day before, the company, along with Alphabet, Amazon, and Meta, made a White House commitment to finance new power for data centers.
Codelco—still the top name in copper—has its eye on productivity improvements. The Chilean state-owned miner faces stubbornly lower ore grades, setbacks on projects, and safety incidents. A government decree seen by Reuters details plans for around $3.9 billion in investment set for 2026, with production expected to tick up this year.
Codelco plans to focus on advanced analytics—software that combs through massive data sets for decision-making—plus AI, automation, and cybersecurity. Chief Executive Ruben Alvarado said the goal is to process bigger streams of operational data and boost returns for the Chilean state.
Tito Arciniega, Microsoft Latin America’s president, described the partnership as a way to push for “safer, more efficient and sustainable operations.” The company’s regional release noted a 27-year relationship between the firms, adding that this new chapter could see pilots, early tool testing, and worker training all on the table. Source
The Chile deal comes as competitors push ahead on their own AI ambitions in healthcare. Google Cloud announced Thursday it’ll partner with CVS Health to develop a real-time health platform. Amazon Web Services, for its part, introduced a healthcare tool aimed at automating tasks like appointment scheduling, note drafting and medical coding.
Spending in the sector is ballooning. Bridgewater Associates has projected that Microsoft, Alphabet, Amazon and Meta will pour roughly $650 billion into AI infrastructure in 2026, a sharp jump from $410 billion expected next year. Co-chief investment officer Greg Jensen flagged a “more dangerous phase,” citing the surge in physical infrastructure costs. Reuters
Wall Street isn’t cutting much slack for extended AI timelines these days. Microsoft’s stock slid 10% following its January earnings. Zavier Wong at eToro flagged the company’s heavy involvement with OpenAI, noting it “underpin[s] its leadership in enterprise AI” but also piles on concentration risk. Reuters
Microsoft has tried to put the skepticism to rest by rolling out bigger numbers. Back in January, the company disclosed over $200 billion in AI-related spending since fiscal 2024, counted 15 million annual users on M365 Copilot, and reported a cloud backlog standing at $625 billion. Numbers like these shed some light on why deals such as its agreement with Codelco are key for what comes next.
